Delphi will provide the battery pack systems and cooling systems for the 2008 Ford Fusion Hybrid and Mercury Milan Hybrid vehicles. It will also provide hybrid vehicle electronics for several other yet-to-be announced vehicle customers.

Leveraging its breadth and depth of systems integration and power electronics expertise, Delphi's power electronics operation provides advanced technology systems to produce hybrid vehicle powertrains that are industry leaders in efficiency.

"Delphi has been developing power electronics and technologies for nearly 20 years," said Thomas Goesch, Delphi product line manager. "We are using our unique systems integration 'know how' in this emerging field to help hybrid vehicle manufacturers offer consumers efficient, cost competitive and reliable hybrid vehicles."

To complement the power electronics, Delphi offers shielded electrical harnesses solutions for connecting the hybrid electric vehicle system. Custom connection systems, addressing safety, sealing, and shielding are an integral part of the wiring package. The overall wiring systems costs are reduced through bundled shielding products.

Addressing the thermal management challenges of hybrid powertrains can potentially have a significant impact on hybrid vehicle climate systems. Delphi's core thermal systems technologies can satisfy the need to cool batteries and power electronics without compromising passenger comfort. Delphi's systems approach will ensure that the total energy required to manage the thermal needs of the hybrid powertrain and provide passenger comfort result in the best overall value, including good fuel economy and uncompromised comfort.

Delphi has had more than 70 patents issued since 2000 in power electronics and advanced energy systems. During the mid-1990s, Delphi built much of the electronics, including the hybrid module and electrical systems, for the first electric vehicles built and made available on the market by a major manufacturer in North America.

As oil prices continue to rise, Delphi's power electronics experience is gaining more traction with vehicle manufacturers. More hybrid vehicles are hitting the road in North America that combine the features of two energy sources -- usually gasoline and electricity -- to help drivers save money on the cost of operating a vehicle. Currently, buyers of hybrid vehicles in the United States are eligible for tax advantages and in some states insurance reductions. In addition, hybrid vehicles emit fewer emissions than gasoline- only powered vehicles.

"Starting early in the development process with vehicle manufacturers, Delphi focuses on aggressively lowering the hybrid electric vehicle cost of powertrain electrification through component design, system design, manufacturability and controls and algorithms development," Goesch said. "These savings can be passed on to add more value for the consumer."

Delphi's advanced electronics allow the electric motor to act not only as a motor but also a generator that can draw energy from the batteries to accelerate the vehicle. In addition, the same electronics allow the motor to slow the vehicle down and return a recharge to the batteries.

Delphi has created an extensive power electronics development lab with advanced analysis and design tools to complement its manufacturing operations. Delphi's capabilities include development from silicon to electronic modules and "art to part" prototyping.

Delphi creates custom designs and builds lower-cost power electronics that include DC/DC converters, ECM/HEV controllers, inverters and high-voltage battery packs with an optional 120/240VAC mobile power unit that integrate seamlessly into the vehicle's electrical architecture. Delphi's power electronics portfolio includes:

DC/DC (Direct Current to Direct Current) Converters

This product changes high-voltage battery power to lower voltages to operate traditional 12-volt accessories and lighting, as well as vehicle systems such as air conditioning, brake assist, and power steering.

ECM/HEV Controllers (Engine Control Module/Hybrid Electric Vehicle

Electronic Controller)

This product provides supervisory control of the vehicle's engine, transmission, and hybrid drive motor/generators to provide peak vehicle performance, emissions, and economy.

Inverters

Inverters provide phased AC (Alternating Current) power for vehicle traction motors and generators, as well as auxiliary pumps and drives.

High Voltage Battery Pack

The battery pack stores energy for use in launching and accelerating the vehicle.

This press release, as well as other statements made by Delphi may contain forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, that reflect, when made, the company's current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the company's operations and business environment which may cause the actual results of the company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the company to continue as a going concern; the ability of the company to operate pursuant to the terms of the debtor-in-possession ("DIP") financing facility; the company's ability to obtain court approval with respect to motions in the chapter 11 proceeding prosecuted by it from time to time; the ability of the company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the company to propose and confirm one or more plans of reorganization, for the appointment of a chapter 11 trustee or to convert the cases to chapter 7 cases; the ability of the company to obtain and maintain normal terms with vendors and service providers; the company's ability to maintain contracts that are critical to its operations; the potential adverse impact of the Chapter 11 cases on the company's liquidity or results of operations; the ability of the company to execute its business plans, including the transformation plan described in the Company's March 31, 2006 press release, and to do so in a timely fashion; the ability of the company to attract, motivate and/or retain key executives and associates; the ability of the company to avoid or continue to operate during a strike, or partial work stoppage or slow down by any of its unionized employees; and the ability of the company to attract and retain customers. Other risk factors are listed from time to time in the company's United States Securities and Exchange Commission reports, including, but not limited to the Annual Report on Form 10-K for the year ended December 31, 2005. Delphi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise.

Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the company's various pre-petition liabilities, common stock and/or other equity securities. Additionally, no assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. A plan of reorganization could result in holders of Delphi's common stock receiving no distribution on account of their interest and cancellation of their interests. Under certain conditions specified in the Bankruptcy Code, a plan of reorganization may be confirmed notwithstanding its rejection by an impaired class of creditors or equity holders and notwithstanding the fact that equity holders do not receive or retain property on account of their equity interests under the plan. In light of the foregoing and as stated in its October 8, 2005, press release announcing the filing of its Chapter 11 reorganization cases, the company considers the value of the common stock to be highly speculative and cautions equity holders that the stock may ultimately be determined to have no value. Accordingly, the company urges that appropriate caution be exercised with respect to existing and future investments in Delphi's common stock or other equity interests or any claims relating to pre-petition liabilities.